Resolving Disability Insurance Policy Termination
Like in the case of any other insurance policies, it can always happen that your disability insurance policy gets terminated. There is nothing to worry as such. However, you should know your next plan of action when such a thing happens. In most cases, the insurance company reinstates the amount as soon as it is brought to their notice. Therefore follow these simple steps to resolve the issue with your insurance company as early as possible.
Find out about the validation
Once you get to know your policy has been terminated, you should contact your insurance company without any delay. Call up or send an email and ask for an explanation as to why the policy was cancelled. It is mandatory for all insurance companies to notify you the rationale behind the policy termination. It is therefore important to maintain the records of the dates you have requested for the validation of the amount loss in the policy. In case, you do not get any response from the insurer within 10 working days, you should follow up the matter.
Check with your original cover
The moment you receive a notification that states the reasons for policy termination, have a copy of your original policy in hand. You should compare the section on policy termination and whether the same reasons are mentioned on your original policy. Sometimes, the insurance company as per the norm has cancelled your insurance cover for you not being able to pay the premium on time. However, if your original cover states that you can pay the premium within 10 days of the due date, you are saved. In that case, your cover will be considered. Sometimes the insurance company fails to inform you on time about the premium payment and so on. In such cases, if you take up a little proactive step and the mistake made from their end, your termination would be invalid. However, keep all your past records ready so that you can produce the evidences whenever required.
Be proactive in solving the issue
If a situation occurs such that your disability insurance policy gets unethically cancelled, you should first inform the insurance company and ask them to reinstate the policy. Do it in writing so that it is recorded. You can also lodge a complaint about the insurer to your state board of insurance stating that the coverage has been terminated as a breach of contract. In case the grounds on which the policy was cancelled are valid, you can request your insurer to give some more time and produce whatever is essential to produce in order to reinstate the policy. In most cases, insurers understand the reason and give you an extended short deadline and thereafter reinstate your policy.
Take the matter to the Court
This is your last resort. However, if the insurance company does not cooperate or reinstate your policy, you can take the matter before the law court. It is advisable to consult an experienced lawyer who has the expertise in handling insurance-related cases. He can help you solve the issue in a much effective manner.